Indonesia aims to maximise its used cooking oil (UCO) potential to achieve over 1mn kilolitres/yr of sustainable aviation fuel (SAF) output by 2030, deputy chairman of the People's Consultative Assembly of Indonesia Eddy Soeparno said at the UN Cop 30 climate summit in Belem, Brazil.
Indonesia is rich in feedstock resources, but currently only about 23pc of Indonesia's UCO is collected, with the rest discarded or wasted, said Soeparno at the summit on 12 November.
By optimising collection systems, Indonesia can mobilise up to 715,000 t/yr of UCO, which would unlock 187,000 kl of SAF-equivalent feedstock, he said. This would also lead to the avoidance of an estimated 500,000 t/yr of CO2 emissions.
Through state-owned energy firm Pertamina's green refinery expansion in Central Java and South Sumatra, Indonesia is targeting about 1.114mn kl/yr of SAF output capacity by 2030. Indonesia's projected cumulative SAF demand could reach approximately 860,000 kl/yr by 2039. By this time, with the expanded production capacity, there may be a supply surplus of about 23pc, which could be exported, said Eddy.
National strategy
Indonesia aims to link feedstocks, refineries and distribution under one co-ordinated framework. The first step is to secure domestic feedstock and guarantee a stable supply for the hydrotreated esters and fatty acids (HEFA) pathway by implementing a domestic market obligation (DMO) for palm oil by-products such as palm fatty acid distillate (PFAD), and prioritising domestic use, said Soeparno.
The second step is to scale production through innovation, by using next-generation SAF technology such as alcohol-to-jet and power-to-liquid, in national strategic projects.
Lastly, to ensure market availability, it is important for SAF to flow through dedicated jet fuel distribution networks to key airports to guarantee consistency of supply once blending mandates begin.
Indonesia plans to implement a 1pc SAF blending target by 2027 at selected airports and on some flights.
SAF currently costs 2-3 times more than fossil jet fuel, so Indonesia must take a phased approach to make it more competitive, said Soeparno. In the short term, the country will focus on developing a national pricing and valuation framework such as setting a minimum price floor for SAF, to provide airlines and investors with predictable cost signals.
In the medium term, the country will look at industrial competitiveness and scaling demand by moving from voluntary adoption to mandatory blending, beginning with major airports.
Indonesia ultimately aims to provide long-term policy certainty for investors by harmonising standards, blending requirements and co-ordination under a unified national roadmap.
